SEBI Accuses Gautam Adani's Nephew, Pranav Adani, of Insider Trading. Relatives Profited ₹9 Million from Leaked SB Energy Deal Information.
SEBI Report: The Adani Group is once again embroiled in controversy. This time, the matter involves Pranav Adani, the nephew of the company's chairman, Gautam Adani. The Securities and Exchange Board of India (SEBI) has leveled serious charges of insider trading against him. SEBI alleges that Pranav Adani shared confidential information about Adani Green Energy's acquisition of SB Energy in 2021, 2-3 days before the deal, enabling his relatives to illicitly profit.
What is the Case About?
The case pertains to May 2021, when Adani Green acquired SB Energy, the Indian unit of the Japanese company SoftBank, for $3.5 billion (approximately ₹30,000 crore). According to SEBI, this deal was the largest in India's renewable energy industry. SEBI claims Pranav Adani leaked information about the deal to his relatives, Kunal Shah and Nripal Shah, who subsequently purchased Adani Green shares, making a profit of approximately ₹9 million.
Call Recordings and Trading Patterns Reveal the Scheme
SEBI stated that an investigation of call recordings and trading patterns revealed insider trading. Confidential information was shared 2-3 days before the deal was finalized, a violation of regulations. SEBI documents refer to this as "illegal profit."
Pranav Adani's Response
In an interview with Reuters, Pranav Adani called the accusations "incorrect" and stated he had not broken any rules. He also indicated a desire to resolve the matter through settlement, although he did not admit to wrongdoing.
Shah Brothers' Defense
The lawyer for Kunal and Nripal Shah challenged SEBI's accusations, arguing that their clients' trading was based on publicly available information and involved no malicious intent. While SEBI offered a settlement to both brothers, they refused, citing unfavorable terms.
Adani Group Faces Controversy in the US
It is noteworthy that this is not the first time the Adani Group has faced serious accusations. In November 2023, investigations into fraud and bribery were underway against the Adani Group in the United States. The allegations involved paying over ₹2,000 crore in bribes to secure projects in India and misleading investors to raise funds.
